Fabletics Benefits from Loyal Customers

Buying anything in today’s world is a very inexpensive venture. Most people use online shopping sites to get what they need or want. Unfortunately, the transition from in-store to online created an opportunity for unethical e-commerce companies to capitalize. These unethical companies used false advertising and overhyped promotions to take advantage of trusting consumers.

After years of abuse, customers began researching businesses before making any purchase decisions. As the number of people researching before buying grew, the “crowd” obtained more power. Now, the power of the crowd can either make or break a company; regardless of their previous reputation.

This shift in consumer behavior allows newer companies a chance to succeed in markets usually dominated by powerhouses. These companies embrace the power of the crowd and promote online reviews and feedback, to establish good customer relationships. Review-centric marketing strategies like these are what made Fabletics so popular in such a short time frame.

Fabletics launched only four years ago; yet, it’s already a $250 million business with over one million paying members. Fabletics has also experienced tremendous growth by leveraging online reviews in its favor. Without trying, Fabletics creating some of the most loyal customers of any activewear brand.

It took a lot to compete in the activewear market. Luckily, activewear, also called athleisure apparel, is a growing trend that shows no signs of slowing down anytime soon. In the U.S. activewear is a $40 billion industry, and it’s predicted to nearly double by 2020. Activewear seems to be most popular amongst millennials.

The popularity of this trend opened the activewear market wider than it’s ever been. Before, only brands like Nike, Under Armour, and Lululemon sold activewear. When Fabletics joined powerhouses, it was the only one selling activewear at affordable prices. Today, discount brands like Wal-Mart and Target have their own, more inexpensive lines.

Even though these other discounts brands increasingly encroach on Fabletics’ territory, they’ll never outperform the fitness fashion giant. Fabletics sells on-trend fashion, which other discounts don’t sell. Fabletics also sells products for all sizes of women, which is increasingly rare for most of the more expensive brands.

Fabletics is also a learning business, meaning it uses big data to determine all of its future moves. Using its own sourced of crowd-sourced reviews, Fabletics can better predict what customers will want to buy and create more preferable lines.